GBP/USD drops to 1.4100 handle after TNS Brexit poll

The GBP/USD pair extended its slide and dropped to session low level of 1.4100 handle after the latest 'Brexit' poll continues to show rising support for the 'leave' camp.

During the last few trading hours, the pair tumbled to 1.4100 level after the latest TNS poll on 'Brexit' referendum showed 47% of respondents preferred UK to exit from the EU while 40% wanted to stay. The pair is now extending its slide for fourth consecutive day as uncertainty surrounding the UK-EU referendum and its implication on the UK economy continue to weigh on investor sentiment.

Adding to it, UK May CPI came-in at 0.3% y-o-y, which was slightly below consensus estimates of 0.4% y-o-y. Meanwhile, core CPI remained unchanged at 1.2% y-o-y. Soft CPI print added to the weak sentiment surrounding the British Pound and hence an attempted recovery to 1.4170 got sold into.

Ahead of the critical UK-EU referendum on June 23, traders would turn their focus on the release of UK employment data and the much awaited FOMC meeting outcome on Wednesday ahead of the BoE monetary policy announcement on Thursday.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet note, "the GBP/USD pair 4 hours chart shows that the technical indicators have resumed their declines after recovering from extreme oversold readings, whilst the 20 SMA has accelerated its bearish slope and stands now around 1.4290. The risk of wild moves either side of the board increases daily basis as the referendum looms, which means extreme cautious is recommended."

"Nevertheless, a break below 1.1410 should see the pair falling down to 1.4070 first, whilst below this last, it can extend its decline down to 1.4000/30. The 1.4180 level is the immediate resistance, followed by 1.4220 and 1.4250, with approaches to this last probably attracting selling interest."

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